PGN 3Q net income rises 88%

PGN 3Q net income rises 88%

PT Perusahaan Gas Negara (PGN), Indonesia's state-controlled
gas distributor, had net income for the third quarter ended Sept.
30 rise 88 percent as it benefited from higher sales and probably
from a stronger rupiah.

Net income for the quarter rose to Rp 187.7 billion (US$21
million) from Rp 100 billion, as sales rose 25 percent to Rp 1.17
trillion. The profit was calculated by deducting first-half
earnings from nine-month figures.

For the nine months to the end of September, Perusahaan Gas'
net income fell 49 percent on foreign exchange losses and higher
debt costs.

The rupiah fell 8 percent in the nine-month period from a year
earlier, making it more expensive for companies to repay debt. A
2.7 percent gain in the currency in the July-Sept period may have
helped the company improve its third-quarter profit.

For the first nine months, the Jakarta-based company earned Rp
263.9 billion, from Rp 522.2 billion a year earlier, it said in a
statement to the stock exchange.

It didn't provide per-share data. The profit report was not
audited.

In the nine-month period, it reported a foreign exchange loss
of Rp 227.9 billion, from a gain of Rp 78.5 billion a year
earlier.

Its interest expenses more than tripled to Rp 295.7 billion
from Rp 84.3 billion a year earlier.

Perusahaan Gas had long-term debt of Rp 6.09 trillion at the
end of September, compared with Rp 3.87 trillion a year earlier.

Its profit was also hurt in the nine months as costs of
distribution and transport soared 80 percent to Rp 535.8 billion,
it said in its statement.

Jan.-Sept. revenue from sales of gas and transmission rose 24
percent to Rp 3.27 trillion from Rp 2.64 trillion a year earlier,
the statement said. -- Bloomberg